Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market. Harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some stocks on the move
Speaker 3: today in Europe. I'm Stephen Carroll with Lizzie Burdon, and
Speaker 3: we're joined by Bloomberg reporter Chloe Meda for more. Chloe,
Speaker 3: good morning. Let's start with Universal Music Group subscription revenue
Speaker 3: growing more than expected. What's going on?
Speaker 1: Oh yeah, reported revenue ahead of expectations for the third quarter,
Speaker 1: and that's thanks to two things in particular. So the
Speaker 1: omnipresident Taylor Swift with really strong sales of her latest album,
Speaker 1: and then also a really strong performance of the soundtrack
Speaker 1: album for the hit next flip Netflix film k POB
Speaker 1: Demon Hunters, which I've not seen, but apparently it was
Speaker 1: really huge, and so that really boosted the shares this morning.
Speaker 1: After quite an uneven performance over the last few months.
Speaker 1: Universal is in quite an interesting position of having to
Speaker 1: adapt to this to the music industry created by AI,
Speaker 1: of course, so instead of fighting against it, it's actually
Speaker 1: decided to join forces with an AI music startup to
Speaker 1: collaborate on a new music creation and streaming service which
Speaker 1: essentially will automate that music making process with a tool
Speaker 1: that is trained on license music from artists. So it's
Speaker 1: doing that. It's also signed a partnership with Spotify to
Speaker 1: develop what it has called a responsible AI products that
Speaker 1: respect artists copyright. So something definitely to watch going forward
Speaker 1: because all of that is really likely to reshape the
Speaker 1: music industry in quite significant ways, and labels have to
Speaker 1: find a way to protect themselves against those AI songs
Speaker 1: taking that market share.
Speaker 3: Yeah, that's really interesting. I've also not watched KPARP Demon Hunters,
Speaker 3: but I have listened to a very long podcast discussing
Speaker 3: Life of a shell Girl, so I feel fully up
Speaker 3: to date on the cultural analysis of Taylor Sola this album.
Speaker 2: Absolutely no shame there from Star Carl. I want to
Speaker 2: take it right to say for Territory Bank Earnings erst
Speaker 2: raising its outlook for a year, and of course they's
Speaker 2: out of Austria.
Speaker 3: One of the updates from them.
Speaker 1: Yeah, so they raise their net interest income and their
Speaker 1: capital guidance this morning, which moved the shares higher, with
Speaker 1: analysts noting that a strong capital position and also improving
Speaker 1: profitability for US, so it's essentially building up its capital
Speaker 1: cushion to help it fund the acquisition of Santandre's operations
Speaker 1: in Poland. So this is a deal that was announced
Speaker 1: in May. It's buying those Polish operations for about seven
Speaker 1: billion euros, which makes it its largest deal ever. So
Speaker 1: it's looking to pay for the transaction with a few
Speaker 1: different ways, so with internal fund so by retaining earnings
Speaker 1: and also temporarily reducing payouts to investors. But then it's
Speaker 1: also freeing up capital by ufloading risks related to a
Speaker 1: corporate loan portfolio that's worth more than ten billion euros.
Speaker 1: So it seems that the plan to fund that acquisition
Speaker 1: is being taken quite well by investors, even though it
Speaker 1: does it does involve for having to reduce some payouts.
Speaker 1: The net interest income guidance boost is also quite reassuring
Speaker 1: and it really confirms that lending volumes are quite strong
Speaker 1: in markets like Czechia and Slovakia as well. So it's
Speaker 1: overall quite a positive update from ASTA and that really
Speaker 1: moved the shats this morning.
Speaker 3: Finally, Chloe, we're going to talk about Peak reporting better
Speaker 3: than expected third quarter sales.
Speaker 1: Yeah, so that is a Spanish company and Catalan company
Speaker 1: that makes perfumes.
Speaker 3: And that's that wrong.
Speaker 1: Well, I think it's pooche, but checked. I checked this morning.
Speaker 1: But I mean, I do not trust me on that.
Speaker 1: I have no clear idea, but yeah.
Speaker 3: You're right, Catalan versus Nish pronunciation anyway.
Speaker 1: Yea. So it makes perfumes and makeup and reported better
Speaker 1: than expected sales and it also upgraded the guidance for
Speaker 1: the last three months of the year, so it said
Speaker 1: it at actually a really solid start to the fourth quarter,
Speaker 1: which obviously is the most important quarter for those kinds
Speaker 1: of companies. And the update also suggested a potential rebound
Speaker 1: in the fragrance's segment, which is very welcome after quite
Speaker 1: a bit of weakness in that particular division. It's a
Speaker 1: really important one because it's got quite a much higher
Speaker 1: margin than that makeup and skincare segments that are growing
Speaker 1: much faster. That recovery there in those perfumes is a relief.
Speaker 1: Some ane lists did say that the company did not
Speaker 1: address any questions about the growth beyond twenty twenty five,
Speaker 1: but for now, investors seem to be happy with the
Speaker 1: positive twenty twenty five performance.
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